The Government has decided to issue the following Instructions/ Standard Operating Procedures, to implement the Old Pension Scheme also known as the Central Civil Services (Pension) Rules, 1972, for the existing/ retired employees who are/were covered under the National Pension System: (Implementation Of Old Pension Scheme)
Anemployee, who wishes to remain under the National Pension System, shall exercise an option, within sixty days from the date of issuance of these instructions, at Annexure-I, which shallbe dulynotarized and submitted tothe Head of Office. Such employee(s), shall continue to be covered under the National Pension System (also known as Contributory Pension Scheme), The contributions (both employer’s and employee’s share) under the National Pension System, shall be deposited as per the Pension Fund Regulatory and Development Authority Regulations, till the retirement of employee(s). (i) The Government employees who wishes to be covered under the Central Civil Services (Pension) Rules, 1972, also known as Old Pension Scheme, shall exercise an option, within sixty days from the date of issuance of these instructions, on the prescribed format at Annexure-II.
An undertaking shall also be furnished by such employees on the prescribed format at Annexure-III, The ‘option’ and ‘undertaking’ as per the Annexure-II and Annexure-III, shall be duly notarized and same will be submitted to the Head of Office. (iii) An Option once exercised by the Government employees, either opting for the Central Civil Services (Pension) Rules, 1972 or the National Pension System shall be final and irrevocable. If an employee fails to exercise an option within the stipulated period, it shall be deemed that he/ she wishes to be contimued under the National Pension System. (iv) The employees covered under the National Pension System and opting for the Central Civil Services (Pension) Rules, 1972, also known as the Old Pension Scheme, shall also be covered under the General Provident Fund (Central Service) Rules, 1960.
(v) The State Government vide Office Memorandum No. Fin (Pen)A(3)-1/2023 dated 17.04.2023, has decided that contributions of the State Government employees (i.e. employee’s and employer’s share) covered under National Pension System shall be stopped w.e.f. 1 April, 2023. Now, in partial modification of the Office Memorandum dated 17.04.2023 above, it has been decided that the contributions of the State Government employees (i.e. employee’s and employer’s share) who opt for National Pension System (NPS) as per para-l above, shall continue to be deposited under National Pension System (NPS). In any case, ifthe contribution for the month of April, 2023 of an employee, who has now opted for National Pension System (NPS), was stopped in view of OM dated 17.04.2023 above, he/ she may be at liberty to deposit his/ her contribution under National Pension System(NPS).
In such cases, Government share will also be deposited. (vi) The Government Servants, who have opted for the Central Civil Services (Pension) Rules, 1972, i.e. Old Pension Scheme, shall be paid pensionary benefits under these Rules subject to deposit of Government contribution and dividend/ return earned thereon, to the State Government. The amount of the Government contribution shall be deposited under the Receipt Head “0071 Contribution & Recoveries towards pension and other retirement benefit, 01 Civil, 101-Subscriptions and Contributions, 03-Accumulated Pension Wealth in respect of National Pension Systemsubscribers”and the amount ofdividend/ return earned on the Government contribution, till the date ofwithdrawal, shall be deposited under Receipt Head “0071-Contribution & Recoveries towards pension and other retirement benefit, 01-Civil, 101-Subscriptions and Contributions, 04-Accumulated dividend on Government Contribution of National PensionSystem employees converted into Old Pension Scheme.”
(vii) Employees, who were covered under the National Pension System (NPS) and have already retired/ died, between the period 15.05.2003 to 31.03.2023 and who fulfil the eligibility criteria under the Central Civil Services (Pension) Rules, 1972, such retired employee and eligible family member of deceased employee, shall be entitled to pension from prospective date i.e. with effect from 01.04.2023, on exercising an option for the same on the prescribed format at Annexure-II and submission of an undertaking at Annexure-III, subject to deposit of the Government contribution and dividend/ return, tillthe date of withdrawal, to the State Government. The amount of Government contribution and dividend/ return shall be deposited under the Receipt Head “0071 Contribution & Recoveries towards pension and other retirement benefit, 01 Civil, 101-Subscriptions and Contributions, 03-Accumulated Pension Wealth in respect of National Pension System Subscribers and 04-Accumulated dividend on Government Contribution of National Pension Systememployees converted into Old Pension Scheme.”
(viii)Employees’ own contribution alongwith dividend/ return earned thereon, shall be retained by such employees who have opted for the Central Civil Services (Pension) Rules, 1972. (ix) The employees covered under National Pension System and opting for the Central Civil Services (Pension) Rules, 1972 i.e. Old Pension Scheme, shall also furnish an undertaking for adjustment of the Government contribution and dividend earned thereon, fom the gratuity/ leave encashment/ GIS, if they fail to deposit such amount to the Government Account. (x) Ifanemployee, who has opted for Central Civil Services (Pension) Rules, 1972 i.e. Old Pension Scheme, fails to deposit Government contribution and dividend earned thereon, to the Government Account, and said amount is also not possible to be adjusted completely against the payment of gratuity/ leave encashment/ GIS, then such an employee shall not be entitled to any pension under the Central Civil Services (Pension) Rules, 1972. (xi) The Head of Department/ Head of Office shall take up the pension cases of Government employees, who opted for the Old Pension System, with the Principal Accountant General (A&E), Himachal Pradesh, for authorisation after following due procedure and codal formalities under the CCS(Pension)Rules, 1972.
